The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-07

would be reached, l believe, by it's entire dis
connection with private business interests. yet
when, by perversion of its purposes. 1t holds
money uselessly subtracted from the channels
of trade. there seems to be reason for the
claim that some legitimate means should be
devised by the government to restore In an
emergency, without waste or extravaganza such
money to its place among the people.
y such an emergency arises. there now exists
no clear and undoubted executive power OF re-
lief. Heretofore the redemption Of per cent.
oonds. which we're payable at the option of the
government, has afforded means for the dis
bursement of the excess of our revenues; but
these bonds have all been retired and there are
no bonds outstanding. the payment or which we
nave the right to insist upon. The contri utiou
to the sinking fund, which furnishes the occa-
sion for expenditure IN the purchase of bonds.
has been already made for the current year. so
that there IS no outlet in that direction In the
present state of legislation the only pretense of
any existing executive power to restore. at this
time, any part of our surplus revenues to the
people by its expenditure. consists IN the suppo-
sition that the Secretary of the Treasury
may enter the market and purchase the
bonds of the government not Vet due,
at q rate OF premium to be agreed upon.
The only provision of law from which such
power could be derived is found in appropris-
tion bill passed number of years ago; and It is
subject to the suspicion that it was intended TO
be temporary and limited in its application. in
stead of comforting continuing discretion and
authority. No condition ought to exist which
would justify the grant of power to a single Off
cial. upon his Judgment of its necessity to with
pie. in an unusual manner, money held in tho
treasury. and thus affect. at his WILL the fnan-
cal situation of the country; and if it is deemed
wise to lodge in the Secretary OF the Treasury
the authority. in the present juncture to pur-
chase bonds. it should be plainly vested and
provided. as far as possible, with such checks
and limitations will define this officials rights
and discretion. and at the same time relieve
MIN from undue responsibility.
In considering the question of purchasing
bonds a means of restoring to circulation the
surplus accommodating in The trea II
should be borne in mind that premiums must OF
course be paid upon such purchases; that there
may be a large part of these bonds held as in
vestments which cannot be purchased at any
price and that combina tions among holders who
are willing to sell may unreasonably enhance
the cost of such bonds to the government It
debt might be refunded at less rate OF inter
est, and the difference between the old and new
securities paid in cash. thus finding use for the
surplus in the treasury. The success OF this
plan, it is apparent, must depend upon the Volt
ton of the holders of the present bonds; and it
is not entirely certain that tho inducements
which must be offered them would result il
more financial benefit to the government than
the purchase of bonds. while the latter PROPOSE
ton would reduce the principal of the debt by
actual payment, instead of extending IT The
proposition to deposit the money held by the
government in banks throughout the country,
for use by the people, is, 1t seems to
me- exceedingly Objectionable In principle, as
establishing too close relationship between the
operations of the government Treasury and the
business of the country. and too extensive II
commingling of their money, thus fostering
unnatural reliance in private business upon pub
lie funds. II this scheme should be adopted it
should only be done as temporary expedientto
ecutive effort should generally be in the oppo-
site direction. and should have a tendency to d.
vorce, uch and as fast can safely be done,
the Treasury Department. from private enter
prises. OF course. it is not expected that IN
necessary and extravaganza appropriations will
be made for the purpose of avoiding the ac-
emulation of an excess of revenue. Such ex-
penditure, beside the demoralization of all JUST
conceptions of public duty which it entails,
slim ates babit of reckless improvidence not in
the least consistent with the mission of our peo-
ple or the high and benefcient purposes OF our
government.
deem it my duty to thus bring to the knowl-
tentiou of their representatives charged with
the responsibility of legislative relief, the
gravity of our financial situation. The failure
of the Congress heretofore to provide against
the dangers which it was quite evident the very
nature of the difficulty must necessarily
produce, caused condition of financial
last adjournment which taxed to the
utmost all the authority and expedieats within
executive control; and these appear now 10 be
exhausted. If disaster results froEs the
tinued inaction of Congress. the responsibility
must rest where it belongs Though the stu
alton thus far considered is fraught with danger
presents features of wrong to the people well
peril to the country. it is but result growing
out of a perfectly palpsble and apparent cause.
constantly reproducing the same alarming cir
cumstances-a congested national treasury and
depleted monetary condition In the business OF
the country. 1t need hardly be stated that
while the present situation demands a remedy,
we only De saved from like predicamens
in the future by the removal of it's cause.
Our scheme of taxation. by means of whi,h
this needless plus is taken from the people
and put into the public treasury, consists of q
tariff duty levied upon importatioEs from
abroad. and internal revenue taxes levied upen
the consumption of tobacco, and spirituous, AID
malt liquors 1t must be conceded that none OF
the thirgs subjected to internal revenue taxation
are. strictly speaking necessaries. There ap.
pears to be Just complaint of this taxation by
the consumers of these articles, and there seems
to be no thing well able to bear the burden
without hardship to any portion OF the people
But present tariff laws, the vicious, IN.
equitable and Illogical source of unnecessary
taxation ought to be at once revised and amend
ed These laws, as their primary and plain
effect raise the price to consumers of all articles
imported and subject TO duty, by precisely the
sum paid for such duties. Thus the amount OF
the duty measures the tax paid by those who
purchase for use these imported articles. Many
of these things, however. are raised or manu-
featured in our own country, and the duties now
levied upon foreign goods and products arc
called protection to these home manufactures,
because they render it possible for those OF our
people who manufacturers to make these
taxed articles and sell them for a price equal 70
that demanded for the imported goods that have
paid customs duty. So il happens that while
comparatively a few use the imported articles,
millions of our people, who never use and never
saw any of the foreign products, pur-
chase and use things of the same kind made
in this country. and pay therefor nearly or quite
the enhanced price which the
duty adds to the imported articles. Those who
buy imports pay the duty charged thereon into
the public treasury, but the great majority OF
our citizens, who buy domestic articles
of the same class, pay sum at least approx
mately equal to this duty to the home manu-
This reference to the operation CT our
tariff laws is not made by way of instruction,
but in order that may be constantly
minded of the manner in which they impose q
burden upon those who consume domestic prod
ucts well those who consume imported
articles. and thus create a tax upon all our peo-
pie 1t is not proposed to entirely relieve the
country of this taxation. It must be
extensively continued the source of the gov
income; and in a read justmeDt of our
tariff the interests of American labor engaged
in manufacture should be carefully considered,
as well the preservation of our manufacture
era 1t may be called projection, or by any 9TH
er name. but relief from the hardships and dan